Missouri Revised Statutes













Chapter 400

Uniform Commercial Code

←400.4A-404

Section 400.4A-405.1

400.4A-406→

August 28, 2015

Payment by beneficiary's bank to beneficiary.

400.4A-405. (a) If the beneficiary's bank credits an account of the

beneficiary of a payment order, payment of the bank's obligation under

section 400.4A-404(a), occurs when and to the extent (i) the beneficiary is

notified of the right to withdraw the credit, (ii) the bank lawfully applies

the credit to a debt of the beneficiary, or (iii) funds with respect to the

order are otherwise made available to the beneficiary by the bank.



(b) If the beneficiary's bank does not credit an account of the

beneficiary of a payment order, the time when payment of the bank's

obligation under section 400.4A-404(a) occurs is governed by principles of

law that determine when an obligation is satisfied.



(c) Except as stated in subsections (d) and (e), if the beneficiary's

bank pays the beneficiary of a payment order under a condition to payment or

agreement of the beneficiary giving the bank the right to recover payment

from the beneficiary if the bank does not receive payment of the order, the

condition to payment or agreement is not enforceable.



(d) A funds-transfer system rule may provide that payments made to

beneficiaries of funds transfers made through the system are provisional

until receipt of payment by the beneficiary's bank of the payment order it

accepted. A beneficiary's bank that makes a payment that is provisional

under the rule is entitled to refund from the beneficiary if (i) the rule

requires that both the beneficiary and the originator be given notice of the

provisional nature of the payment before the funds transfer is initiated, (ii)

the beneficiary, the beneficiary's bank and the originator's bank agreed to

be bound by the rule, and (iii) the beneficiary's bank did not receive

payment of the payment order that it accepted. If the beneficiary is obliged

to refund payment to the beneficiary's bank, acceptance of the payment order

by the beneficiary's bank is nullified and no payment by the originator of

the funds transfer to the beneficiary occurs under section 400.4A-406.



(e) This subsection applies to a funds transfer that includes a payment

order transmitted over a funds-transfer system that (i) nets obligations

multilaterally among participants, and (ii) has in effect a loss-sharing

agreement among participants for the purpose of providing funds necessary to

complete settlement of the obligations of one or more participants that do

not meet their settlement obligations. If the beneficiary's bank in the funds

transfer accepts a payment order and the system fails to complete settlement

pursuant to its rules with respect to any payment order in the funds

transfer, (i) the acceptance by the beneficiary's bank is nullified and no

person has any right or obligation based on the acceptance, (ii) the

beneficiary's bank is entitled to recover payment from the beneficiary, (iii)

no payment by the originator to the beneficiary occurs under section

400.4A-406, and (iv) subject to section 400.4A-402(e), each sender in the

funds transfer is excused from its obligation to pay its payment order under

section 400.4A-402(c) because the funds transfer has not been completed.



(L. 1992 S.B. 448)







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